Intercompany business processing describes business transactions which take place between two companies belonging to one organization. In SAP S/4HANA Cloud for Professional Services, intercompany occurs when a company A (the ordering company) has an affiliate company B delivering services in the course of a customer or internal project.
The delivering company posts expenses and intercompany employees record time on the project created in the ordering company. The intercompany billing request is generated via a background job in the delivering company, resulting in the creation of a intercompany billing document request. Finally, the delivering company charges the ordering company by creating an intercompany invoice with reference to the billing request. The intercompany invoice is automatically posted to the accounts payable of the ordering company. You can also control intercompany postings for customer and internal projects by allowing/blocking intercompany transactions.